Collections from accounts receivables usually represents the bulk of a companies cash receipts. Companies who don’t pay attention to their accounts receivables are missing out on all of that income and profit. With the economy in a downward spiral, now is the time to create a cash flow plan for your business.
The most effective thing you can do to increase your income immediately is to collect any outstanding accounts receivable. Some other things you can do include making cash sales, selling assets, renting out space you don’t use and having rental income, and taking advantage of early payment discounts.
When times are tough you can’t afford to be the nice guy, you need to be paid now and if you don’t take action to collect the money that is due to you, you won’t be in business very long.
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